Ethereum ETFs to soon engage in staking: Joe Lubin

Ethereum (ETH) exchange-traded funds (ETFs) will soon likely be allowed by regulators to engage in staking, according to Consensys founder Joe Lubin.

Lubin recently told industry news outlet Cointelegraph that Consensys has “been in discussions with the ETF providers, and they’re already working hard on [staking implementation], so they expect that to be greenlit reasonably soon.” He further added that ETF issuers are “working hard on creating the best solutions” to address “any complexities around staking and slashing.”

Consensys is among the key players in the Ethereum ecosystem, founded by Ethereum co-founder Joseph Lubin. The firm is responsible for the development of crucial tools like MetaMask, provides infrastructure and consulting services, and drives innovation through various blockchain initiatives.

Ethereum staking is a way to participate in Ethereum’s proof-of-stake (PoS) consensus mechanism and secure the network by locking up ETH and signing transactions. In return for performing their duties correctly, stakers earn rewards in ETH.

On the other hand, stakers acting maliciously or failing to meet their obligations may incur penalties or see a portion of their staked ETH slashed. Ethereum ETF issuers engaging in staking could lead to higher returns for the issuer or ETF holders, but setting rules for how to deal with slashing risk increases complexity. Lubin added:

“I think it’s going to be great for the technology and the ecosystem because they are leaning in to enable us to — as an ecosystem — do a better, more robust, more diversified job. […] I think it’s going to lead to greater client diversity as well.”

At the time of writing, Ethereum is trading at $3,271, having fallen nearly 1% in the last 24 hours. The coin’s current market cap is just under $394 billion.

This makes Ethereum worth more than Procter & Gamble with its market cap of nearly $392 billion, as well as Bank of America’s $350 billion.

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